Metals Exploration plc has increased its total budget forecast from US$165 million (£125m) to $171m (£130m) due to “revised electrical infrastructure costs” at La India gold project in Nicaragua.
CONSTRUCTION
The new figure follows the company’s decision to build a 138 kilovolt substation with the country’s national electricity transmission company ENATREL for US$6.2m, which is half the cost of ENATREL’s turnkey proposal of $12.4m.
Metals said that the total revised electrical infrastructure budget – including La India 34.5kV substation, costing $1.6m, and the $4m processing plant switch-rooms – is $11.8m, which is a $5.6m increase from the original budget.
Meanwhile, construction and development at La India has progressed to 40% completion and ahead of the planned 35% target by mid-March 2026.
The processing plant is 13% complete, overall engineering, 85%, while earthworks for the processing plant and run of mine (ROM) pad areas are complete.
Open pit pre-stripping has reached 38% completion overall, with pit deforestation fully finished.
The company said it had so far stockpiled around 94,800 tonnes of low-grade commissioning ore on the ROM pad.
Mine pre-stripping of waste totals 728,000 tonnes from the two main 2026 starter pits of La India phase I North and La India phase I West.
Construction has also started of the tailings storage facility.
Metals reported no lost time injuries since construction began.
FINANCING
The company receives funding from free cash flow from its Runruno gold mine in the Philippines, while further financing could come from an undrawn $30m (£23m) gold pre-pay facility.
Metals is also “actively pursuing” an equipment loan of $20m for mining fleet costs, as expenditure is currently $15m, with total fleet costs projected to reach $29m.
Chief executive officer Darren Bowden added: “The team has delivered another quarter of excellent progress, with major civil foundations complete or near completion across the crushing, grinding, CIL [carbon-in-leach] and thickener areas.
“With over 90,000 tonnes of commissioning ore already stockpiled on the ROM pad and expenditure tracking in line with budget, we are in a strong position as we move into the most intensive phase of construction.
“We remain confident in delivering first gold by December 2026 and look forward to providing further updates as construction accelerates.”